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Analyzing Manufacturing Cost Accounts

Fire Rock Company manufactures designer paddle boards in a wide variety of sizes and styles. The following incomplete ledger accounts refer to transactions that are summarized for June:

Materials

Transaction Debit amount Transaction Credit amount

June $1$ Balance $29,400$ June $30$ Requisitions $($A$)$

June $30$ Purchases $118,000$

Work in Process

Transaction Debit amount Transaction Credit amount

June $1$ Balance $($B$)$ June $30$ Completed jobs $($F$)$

June $30$ Materials $($C$)$

June $30$ Direct labor $($D$)$

June $30$ Factory overhead applied $($E$)$

Finished Goods

Transaction Debit amount Transaction Credit amount

June $1$ Balance $0$ June $30$ Cost of goods sold $($G$)$

June $30$ Completed jobs $($F$)$

Wages Payable

Transaction Debit amount Transaction Credit amount

June $30$ Wages incurred $123,800$

Factory Overhead

Transaction Debit amount Transaction Credit amount

June $1$ Balance $22,700$ June $30$ Factory overhead applied $($E$)$

June $30$ Indirect labor $($H$)$

June $30$ Indirect materials $15,700$

June $30$ Other overhead $109,300$

In addition, the following information is available:

a$.$ Materials and direct labor were applied to six jobs in June:

Job No$.$ Style Quantity Direct Materials Direct Labor

$201$ T$100220$ $$21,020$ $$16,000$

$202$ T$20042033,62026,000$

$203$ T$40022014,2009,000$

$204$ S$20030033,90031,000$

$205$ T$30015015,90014,000$

$206$ S$1001106,8603,000$

Total $1,420$ $$125,500$ $$99,000$

b$.$ Factory overhead is applied to each job at a rate of $170\%$ of direct labor cost.

c$.$ The June $1$ Work in Process balance consisted of two jobs, as follows:

Job No$.$ Style Work in Process,

June $1$

$201$ T$100$ $$6,400$

$202$ T$20016,300$

Total $$22,700$

d$.$ Customer jobs completed and units sold in June were as follows:

Job No$.$ Style Completed

in June Units Sold

in June

$201$ T$100$ X $176$

$202$ T$200$ X $336$

$203$ T$4000$

$204$ S$200$ X $252$

$205$ T$300$ X $125$

$206$ S$1000$

$1.$ Determine the missing amounts associated with each letter and complete the following table. If required, round amounts to the nearest dollar. If an answer is zero, enter in $"0".$ Enter all amounts as positive numbers.

Job No$.$ Quantity June $1$

Work in

Process Direct Materials Direct Labor Factory Overhead Total Cost Unit Cost Units Sold Cost of Goods Sold

No$.201$ fill in the blank $1$

$220$

$$6,400$ $$21,020$ $$16,000$ $fill in the blank $2$

$27,200$

$fill in the blank $3$

$70,620$

$fill in the blank $4$

$321\mathrm{.}00$

fill in the blank $5$

$176$

$fill in the blank $6$

$56,496\mathrm{.}00$

No$.202$ fill in the blank $7$

$420$

$16,30033,62026,000$ fill in the blank $8$

$44,200$

fill in the blank $9$

$120,120$

fill in the blank $10$

fill in the blank $11$

$336$

fill in the blank $12$

No$.203$ fill in the blank $13$

$220$

$14,2009,000$ fill in the blank $14$

$15,300$

fill in the blank $15$

$38,500$

fill in the blank $16$

$0$

fill in the blank $17$

$0$

No$.204$ fill in the blank $18$

$300$

$33,90031,000$ fill in the blank $19$

$52,700$

fill in the blank $20$

fill in the blank $21$

fill in the blank $22$

$252$

fill in the blank $23$

No$.205$ fill in the blank $24$

$150$

$15,90014,000$ fill in the blank $25$

fill in the blank $26$

fill in the blank $27$

fill in the blank $28$

fill in the blank $29$

No$.206$ fill in the blank $30$

$110$

$6,8603,000$ fill in the blank $31$

fill in the blank $32$

fill in the blank $33$

fill in the blank $34$

Total fill in the blank $35$

$$22,700$ $$125,500$ $$99,000$ $fill in the blank $36$

$fill in the blank $37$

$fill in the blank $38$

Line Item Description Amount

A$.$ Materials Requisitions $fill in the blank $39$

B$.$ Work in Process Beginning Balance $fill in the blank $40$

C$.$ Direct Materials $fill in the blank $41$

D$.$ Direct Labor $fill in the blank $42$

E$.$ Factory overhead applied $fill in the blank $43$

F$.$ Completed jobs $fill in the blank $44$

G$.$ Cost of goods sold $fill in the blank $45$

H$.$ Indirect labor $fill in the blank $46$

$2.$ Determine the June $30$ balances for each of the inventory accounts and factory overhead. Use the minus sign to indicate any credit balances.

Inventory Accounts Amount

Materials $fill in the blank $47$

Work in Process $fill in the blank $48$

Finished Goods $fill in the blank $49$

Factory Overhead $fill in the blank $50$